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6/5/2014 4:03PM

American Wealth on the Rise

American wealth is on the rise, hitting a new high in the first quarter despite winter weather plaguing the economy. But who actually benefits from the rise in wealth? Hutchins Center fiscal and monetary policy director David Brooks joins the News Hub. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... I love the the the the first quarter as rising home values a stock staff lately ... it's easy acting in news have I'm Sara Mary ... net worth and US households and nonprofits right so that eighty two trillion dollars ... that's new data from the Federal Reserve out today most of the rising wealth that is pleading guilty already wealthy Americans ... joining us with more is that the FDA said Daddy SJ David Wessel director of the Center on fiscal and monetary policy at Brookings institution ... David thanks for joining us ... but are ... still had to plead not not only made up the losses from the recession but we passed that in terms of net worth it seems like the Guineans ... it is good news is a sign that the economy is healing basically ... Americans as a group at about one and a half trillion dollars more wealth ... at the end of March than they did at the end of December ... that's about a two percent increase in wealth ... and about two-thirds of that comes from rising house prices in about a third from rising stock prices ... I'm not is too ... catty adds one is if you measured against the size of the economy begins all the time in the economy ... was still not quite back to where we were before the ... before the crisis but we're getting close ... and secondly as you imply that the beginning is ... this is great if you're an asset holder if you have a lot of money and the stock market you're getting richer but the typical American family doesn't have a lot it's money in the stock market ... and if you don't own a house you're not participating in the school and ... the data center right let's ... take from an offense like this for weeks not just the working Corvette even middle class ... right well look it's good for the economy when there's more well from the economy because when there's more wealth people spend ... and when rich people spend sometimes they spend on things that are salted and services provided by working people so they gets an indirect benefit ... but it's not gonna make a big difference to the ... spending of the typical American ... on last time he gets a weekend away because wealth in this country is very un evenly divided what'll make a difference is if it creates please businesses to create jobs and those job for five middle class people with incomes ... that'll be a different so this is a step in that direction but it's a very indirect one ... the whole value cited a secure all ins is great news and I in your home is coming up ... the first-time buyer now is there and darker side in this if you're trying to break into the market right now ... well ... the good news is that interest rates on mortgages are still pretty low ... so I'm even as the price of the house is going up in your neighborhood ... you might give you the security Middle East or not ... you not gonna buy a house it's going to be worth less a year from now so he could be a plus for ... home buyers of those who plan it does make tool more expensive ... I think the big problem in the mortgage market is that ... it's still hard for tickle e for new homebuyers to get mortgages that banks are still pretty tight with credit ... this is the one part of the credit system that has not healed ... in fact mortgage debt declined in the first quarter while other borrowing when out ... and so the problem may not be that you can afford to pay the mortgage but the bank will give you one because you have some blemish on your ... credit history or because they don't think your ... job is promising enough or whatever it is a skews that they use ... for turning down right so hard as I say she didn't really quickly overhaul money as the online shopping to de rail or economic progress writes ... I'm sorry the number one shot back to de rail or economic progress right now ... that could be retro look ... if we had some big crisis in the world probably geo political war that rise up oil prices and sapped confidence I think that's the biggest risk right now the common economically we're starting to heal but there's a big risk the something in Syria or North Korea is something that could really derailments I did less OLED and thanks famous for joining us ... you welcome